General information about the County Assessment Function Funding Assistance (CAFFA) Grant ProgramThe 1989 Legislative Assembly enacted House Bill 2338 in response to statewide deterioration in the property tax system caused by a variety of factors, including a lack of local funding. This legislation established an annual grant program to help finance assessment and taxation costs. Funding for the grants comes from document recording fees and a portion of the interest from delinquent property taxes. To receive the grant, each county must submit an application to the department that includes its annual budget for assessment and taxation expenditures as approved by the county governing body. The department reviews each application to determine if the county budget will provide the resources to adequately perform property assessment and taxation functions. If the county's proposed budget is not adequate, the department identifies the areas that must be improved. The county's share of the grant funds is withheld until these areas are addressed. The department distributes grant funds to the counties through the County Assessment Function Funding Assistance (CAFFA) account. County assessment and taxation expenditures totaled $95 million for the 2014-15 tax year. CAFFA grants fund approximately 20.6 percent ($19.6 million in 2013-14) of the annual expenditures.

Funding from the CAFFA grant helps pay for essential assessment and taxation functions including administration, valuation, appeals, tax collection and distribution, cartography, and information processing support. Grant monies also help support the department's industrial and utility property appraisal responsibilities and other assessment and taxation system activities.